Protests in Brazil Burst Bubble: Everything Is Not Fine

A demonstrator holds a banner during one of the many protests around Brazil's major cities in Sao Paulo

Reuters

Previous

1
of
2

Next

BRASILIA, Brazil -- The mass street protests that broke out last week in Sao Paulo, and have since spread to other major cities in Brazil, caught many by surprise. Investors and politicians who thought the economic miracle of South America’s biggest country -- the headliner of the BRIC group with Russia, India and China -- would never end were especially surprised. So were many observers who had bemoaned the passivity of Brazilians in seemingly accepting corruption and overtaxing by their government. The past week’s events have shown that the Brazilian giant, sleeping for so long, has awoken again.

The protests began last week with a demonstration organized by the Passe Livre (Free Pass) movement, a leftist group that wants free public transportation in all of Brazil as its ultimate goal. The announcement that bus fares were being hiked from R$3 (US$1.37) to R$3.20 (US$1.47) was the spark for the march on Avenida Paulista, Sao Paulo’s largest boulevard.

The city’s mayor and the governor of Sao Paulo state, Fernando Haddad and Geraldo Alckmin, both said they would not budge on the price hike and promptly flew off together to Paris to pitch their city as a candidate host of the 2020 World Expo. As the demonstrations grew and continued, they quickly returned home. But it was not until violent clashes between protesters and riot police, using rubber bullets and tear gas on June 13, which left 105 protesters and 12 policemen wounded, that they started to pay attention and soften their stance. On Thursday, Sao Paulo and Rio de Janeiro, the country’s two largest cities, both decided to backtrack and cancel the fare hike.

But it’s too little, too late. Protesters have already moved beyond the bus fare issue. By Monday, June 17, massive demonstrations across the country brought a total of 240,000 Brazilians onto the streets of Brasilia, Sao Paulo, Rio de Janeiro and 10 other major cities, all calling for an end to government corruption, and for increased spending on public education and health care. Most of the protesters are young -- 53 percent of them under 25 according to a Datafolha poll -- while 77 percent have a university degree. But they are also surprisingly apolitical, with 84 percent of those polled saying they don’t have any political affiliation.

Organized mostly by young Brazilians using the Internet and Facebook, the demonstrations have suddenly revealed just how out of touch Brazilian politicians have become with the electorate. A lack of transparency in how public money is used came into sharp focus this year, with the hefty price tags that the federal government has endured for building the soccer stadiums for the World Cup that Brazil is hosting next year. Brasilia’s National Stadium alone was rebuilt at a cost of US$600 million, much higher than its original budget, and behind schedule. It’s common knowledge in Brazil that the final cost of many public construction projects includes hefty kickbacks, which line the pockets of the influential politicians who approve the projects.

“We don’t need the World Cup,” many of the banners read at the demonstrations, often written in English for the benefit of foreign media and the tourists in Brazil to watch games of the Confederation Cup currently being hosted in cities across the country.

Rather than indifference to soccer, Brazil’s national passion, the signs indicate a distrust of those politicians. “The people don’t want political parties as they are now: full of money, as if they were private clubs,” Congressman Jose Antonio Reguffe told the Correio Braziliense newspaper. “I think the transformation will not come from us politicians, but from the people.”

Rising inflation and a surging dollar, which is making imports more expensive, have jolted many Brazilians into realizing that all is not well in the fairy-tale vision of Brazil that the ruling Workers Party and President Dilma Rousseff like to project to the world. Annual inflation is already above 6.5 percent, the ceiling set by the Central Bank, and a spike in food prices over the past year has hit poorer Brazilians especially hard. The price of potatoes has risen 130.4 percent this year alone, in a country where poverty is still widespread and people struggle to survive on the minimum salary of R$678 (US$312) a month.

“This revolt did not happen because of a 20-centavo rise in bus fares,” wrote activist Raphael Tsvakko Garcia on his blog The Angry Brazilian. “It happened because of the rise in fares across the whole country. While the Workers Party is preaching that everything is hunky-dory here, the people on the streets have shown that this is not true. We are not happy with the World Cup, or with the state of our education and health care.”

But why the sudden outburst now? What is obvious so far is that popular discontent with the way the country is being governed, coupled with the perceived corruption of politicians and a generalized disillusionment with traditional politics, has led a large segment of the Brazilian population to feel that the politicians in Brasilia and in their state capitals no longer represent their interests.

Add to that shoddy and relatively expensive public transportation, hours-long waits to see a doctor in crowded public hospitals and government teachers who are paid peanuts compared to the huge salaries politicians pay themselves with public money. All that has pushed many Brazilians over the edge.

For the past 10 years the Workers Party has managed to control social movements largely by funding labor unions. But that no longer seems to work. “Brazil is suffering from an acute political representation crisis,” said Miriam Leitão, a leading economic commentator, in her O Globo column on June 19. “The Workers Party government co-opted most of the civil society groups. Labor unions, some NGOs, student groups and even the Landless movement receive federal funds, keeping them in the government’s orbit. But they no longer represent the interests of the general public.”

Merval Pereira, a columnist for O Globo, said he was surprised that the federal government missed the signals of rising discontent. “The economic environment contributed to breaking that false sensation of well-being,” he wrote. “It’s amazing that with its immense apparatus for information-gathering, that the government, and especially the President’s Office, did not detect the indignation that exploded in the streets. The owner of a polling company, who regularly sold his research to the Workers Party, recently sarcastically commented that doomsayers were living in a parallel reality that had nothing to do with the common person, who was extremely satisfied. According to him, there were no signs of shifting winds that his polling could catch.”

Approval ratings for Rousseffs’ government have already started to slide. The latest poll released on Wednesday said her government’s approval rating had slipped from 63 percent in March to 55 in June. She’s up for re-election in October 2014, and most analysts were certain, before last week, that she was going to win. But with this immense wave of discontent, her future does not look so predictable. It’s a long way to October 2014, and a lot can happen until then.

NO PURCHASE OR PAYMENT NECESSARY TO ENTER OR WIN. A PURCHASE OR PAYMENT WILL NOT INCREASE YOUR CHANCES OF WINNING. The Giveaway is sponsored by IBT Media Inc., 7 Hanover Square, 5th Floor, New York, NY 10004 (“Sponsor”). The Giveaway is void where prohibited or restricted by all applicable law, and all applicable federal, state and local laws and regulations apply. Winners are responsible for any taxes, customs, and duties and like amounts connected with the prizes.

1. ELIGIBILITY. The Giveaway is open only to legal residents of the 50 states of the United States and the District of Columbia who are the age of majority in their respective jurisdiction at the time of entry (19 in AL and NE and 18 in all other states). Sponsor and its advertising or promotion agencies, those involved in the production, development, implementation or handling of this Giveaway, any agents acting for, or on behalf of Sponsor, its respective affiliates, subsidiaries, licensees, service providers, and any other person or entity associated with this Giveaway are referred to as the “Giveaway Entities.” Employees, officers, and directors of the Giveaway Entities and members of their immediate families (spouses, children, siblings, parents and their spouses), and/or persons living in the same household as such persons, whether or not related, are ineligible to enter this Giveaway.

2. PROMOTION ENTRY PERIOD: The Giveaway begins on July 1, 2015 at 12:00 a.m. EST and ends at 11:59:59 p.m. September 31, 2015 (the “Giveaway Period”). When applicable, the Sponsor’s computers will be deemed the official time keeping devices for the Giveaway promotion.

3. HOW TO ENTER. You will receive one entry into the random drawing for the Giveaway Period when you provide a verified e-mail through our designated modal window interface. Limit one (1) entry per person/email address. Multiple entries will be disqualified. All previous winners of any giveaway or contest sponsored by IBT Media are not eligible to enter. Any effort by an entrant to misrepresent himself or herself through the use of aliases or multiple e-mail addresses will disqualify that entrant. Registrations generated by a script, macro or other automated means are void. You must be the rightful owner of the email address provided. In the event of a dispute as to the identity of the winner, the winner will be deemed to be the authorized account holder of the email address provided at the time of entry. Entrants must provide all information requested to be eligible to win. Incomplete or unintelligible entries, in the sole discretion of Sponsor, will be disqualified. Sponsor will not verify receipt of entries and assumes no responsibility for late, lost, damaged, misidentified or misdirected entries.

4. PRIZE DRAWINGS AND NOTIFICATION OF CHOSEN ENTRANTS. A random drawing will be conducted by Sponsor on or about the first week following the Giveaway Period from among all eligible entries received to award one prize (described below). Selected entrants will be notified by email and will be required to respond (as directed) to the e-mail notification within 72 hours of attempted notification. Failure to respond timely to the notification may result in forfeiture of the prize. Selected entrants may also be required to complete an affidavit of eligibility and liability / publicity release (except where such a requirement is prohibited by law). If the completed Release is not returned within the time specified, the prize may be forfeited.

One (1) Prize per Giveaway Period: An Apple Watch Sport™, which is a registered trademark of Apple Inc. Approximate Retail Value: $349. Limit one (1) prize per person/household. No substitution, transfer, or cash equivalent for any prize, except that Sponsor, at its sole discretion, may substitute a prize with a prize of equal value, due to unavailability of advertised prize. Each prize will be awarded provided each prize is properly claimed. The prize will be shipped by Sponsor to the winners within 1-5 weeks of the receipt of a signed affidavit for approved entries. Prize winners are responsible for all taxes and fees related to any prize received. Actual retail value of prizes may vary due to market conditions. The difference in value of prize as stated herein and value at time of prize notification, if any, will not be awarded.

5. ODDS. The odds of winning a prize will depend on the number of eligible entries received for the Giveaway Period.

6. MARKETING AND PRIVACY. Information collected in connection with entries received for this Giveaway will be used for marketing purposes. By entering the Giveaway, entrants consent to receive marketing emails with updates, offers and promotions from Sponsor or third parties. Entrants may follow instructions contained in each subsequent email communication to opt-out of receiving future email communications, however, Sponsor may still use the email address provided to notify entrant if they have been selected as a winner of this Giveaway.

7. CONDITIONS FOR PARTICIPATION. Giveaway is subject to these Official Rules. By participating, entrants agree to be bound by these complete Official Rules. All decisions of Sponsor are final and binding; and entrants agree to waive any right to claim ambiguity in the Giveaway or these Official Rules, except where prohibited by law. In addition, each entrant represents and warrants that all information contained in his/her registration entry is true and accurate. By accepting a prize, winners agree to release, defend, indemnify and hold harmless the Sponsor, its attorneys, affiliates, together with the respective directors, employees, officers, licensees, licensors and agents of each, including without limitation, their respective advertising and promotion entities and any person or entity associated with the production, judging, or administration of the Giveaway (collectively, the “Releasees”) from any and all loss, damage, injury, death, or other liability, either at law or equity, whether known or unknown, asserted or non-asserted, arising from or in connection with awarding, receipt and/or use or misuse of prize or participation in the Giveaway. This Promotion shall be governed by, and construed in accordance with, the laws of the State of New York, regardless of conflicts of laws principles. Any action or litigation concerning this Promotion shall take place exclusively in the federal or state courts sitting in New York County, New York, and each entrant expressly and irrevocably consents to the jurisdiction of and venue in such courts and waives all defenses of lack of jurisdiction and inconvenient forum with respect to such courts. Each entrant agrees to service of process by mail or other method acceptable under the laws of the State of New York. ANY CLAIMS, JUDGMENTS AND/OR AWARDS SHALL BE LIMITED TO ACTUAL OUT-OF-POCKET COSTS ASSOCIATED WITH ENTERING THIS PROMOTION. REGISTERED CONTESTANT HEREBY WAIVES ANY RIGHTS OR CLAIMS TO ATTORNEY'S FEES, INDIRECT, SPECIAL, PUNITIVE, INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ENTRANT, WHETHER FORESEEABLE OR NOT AND WHETHER BASED ON NEGLIGENCE OR OTHERWISE. EACH PARTY EXPRESSLY WAIVES ANY RIGHT TO A JURY. The releases hereunder are intended to apply to all claims not known or suspected to exist with the intent of waiving the effect of laws requiring the intent to release future unknown claims. This Giveaway is void outside the U.S. and where prohibited or restricted by law, and subject to applicable federal, state, and local laws. Sponsor reserves the right to disqualify any entrant it finds to be tampering with the entry process or the operation of the Giveaway or violating these Official Rules.

8. PUBLICITY AND RELEASE FORMS: Sponsor reserves the right to use the Giveaway for publicity purposes in any media, and to use the name, likeness, and hometown name and/or prize information of prize winners as part of that publicity, without any compensation or prior review, unless prohibited by law. Each prize winner will be required to submit a declaration and a liability/publicity release and confirmation that the prize winner has followed the rules of the Giveaway, in the form supplied by Sponsor (the "Declaration and Release"), and signed by the prize winner. The Declaration and Release must be signed and returned within seven (7) days of notification. Prize won by an eligible entrant who is a minor in his/her state of residence will be awarded to minor's parent or legal guardian who must sign and return all required documents. In the event the Affidavit and Release is not returned within this period, an alternate winner may be selected for such prize. Any prize notification or prize returned to Sponsor as undeliverable will result in the awarding of that prize to an alternate winner (who will be required to comply with similar procedures).

9. LIMITATION OF LIABILITIES: The Releasees shall not be liable for: (i) late, lost, delayed, stolen, misdirected, incomplete unreadable, inaccurate, garbled or unintelligible entries, communications or affidavits, regardless of the method of transmission; (ii) telephone system, telephone or computer hardware, software or other technical or computer malfunctions, lost connections, disconnections, delays or transmission errors; (iii) data corruption, theft, destruction, unauthorized access to or alteration of entry or other materials; (iv) any injuries, losses or damages of any kind caused by the prize or resulting from acceptance, possession or use of a prize, or from participation in the Giveaway; or (v) any printing, typographical, administrative or technological errors in any materials associated with the Giveaway. In the event that more prize notice emails are sent for any of the prizes than the number of prizes available as specified in these Official Rules, a random drawing will be conducted from all entrants who received such notices to award number of prizes specified in these Official Rules. Sponsor disclaims any liability for damage to any computer system resulting from participating in, or accessing or downloading information in connection with this Giveaway, and reserve the right, in their sole discretion, to cancel, modify or suspend the Giveaway should a virus, bug, fraud, computer problem, unauthorized intervention or other causes beyond Sponsor’s control, corrupt the administration, security or proper play of the Giveaway. Sponsor may prohibit an entrant from participating in the Giveaway or winning a prize if, in its sole discretion, it determines such entrant is attempting to undermine the legitimate operation of the Giveaway in any way by cheating, hacking, deception, or any other unfair playing practices of intending to annoy, abuse, threaten or harass any other players or Sponsor representatives. Use of any automated system to participate is strictly prohibited and will result in disqualification. Sponsor may disqualify at its sole discretion any entries it believes are created by an automated system or exceed the maximum of one entry per natural person/email address. Disputes regarding these Official Rules and/or this Giveaway will be governed by the internal laws of the State of New York, without regard to conflicts of laws principles. Any and all legal actions or claims arising in connection with this Giveaway must be brought in a court of competent jurisdiction within New York County, New York or, at Sponsor’s sole discretion, anywhere else in the United States. CAUTION: ANY ATTEMPT TO DELIBERATELY DAMAGE THE IBT MODAL WINDOW OR UNDERMINE THE LEGITIMATE OPERATION OF THE GIVEAWAY MAY BE IN VIOLATION OF CRIMINAL AND CIVIL LAWS AND WILL RESULT IN DISQUALIFICATION FROM PARTICIPATION IN THE GIVEAWAY. SHOULD SUCH AN ATTEMPT BE MADE, SPONSORS RESERVE THE RIGHT TO SEEK REMEDIES AND DAMAGES (INCLUDING ATTORNEY FEES) TO THE FULLEST EXTENT OF THE LAW, INCLUDING CRIMINAL PROSECUTION.

10. PRIVACY. Please refer to Sponsor’s privacy policy located at http://www.ibtimes.com/corporate/privacy for important information regarding the collection, use and disclosure of personal information by Sponsor.

11. WINNER LIST. For names of the winners, send your request in a self-addressed, stamped envelope to: The IBT Media Email Address Monthly Giveaway Winners List, 7 Hanover Square, 5th Floor, New York, NY 10004. Winner lists will be sent out once winners have been verified. The name of the all winners will be posted only for 30 days after the end of the Entry Period.

BY ENTERING, YOU AGREE THAT YOU HAVE READ AND ACCEPTED ALL OF THESE GIVEAWAY RULES.